Warren Edward Buffett is an American investor, businessman, and philanthropist. He is one of the richest men in the world. Buffett is called the "Oracle of Omaha"[ or the "Sage of Omaha.
Warren Edward Buffett was born on August 30, 1930, in Omaha, Nebraska state, USA. His father Howard Buffet was s stock broker and Congressman. His mother Leila Buffet was a homemaker. He is the only son and second of the three children.
Buffett began his education at Rose Hill Elementary School in Omaha. In 1942 his father was elected to the Congress and after moving with his family to Washington, D.C., Warren finished elementary school, attended Alice Deal Junior High School, and graduated from Woodrow Wilson High School.
Even as a child Buffett displayed an interest in making and saving money. He went door to door selling chewing gum, Coca-Cola, or weekly magazines. For a while he worked in his grandfather's grocery store. While still in high school, he carried out several successful money-making ideas. When he was only 14 years old, he filed his first income tax return. In 1945, in his sophomore (a student in the second year of high school or college) year of high school, Buffett and a friend spent $25 to purchase a used pinball machine, which they placed in the local barber shop. Within months, they owned several machines in different barber shops.
Buffett's interest in the stock market and investing also dated to his childhood. On a trip to New York at the age of ten he made a point to visit the New York Stock Exchange. And about this same time he purchased shares of Cities Service for himself and his sister at $38 per share. The stock quickly dropped to only $27, but Buffett held on tenaciously until they reached $40. He sold his shares at a small profit, but regretted the decision when Cities Service shot up to nearly $200 a share. He later cited this experience as an early lesson in patience in investing.
While in high school he invested in a business owned by his father and bought a farm worked by a tenant farmer. By the time he finished college, Buffett had accumulated more than $90,000 in savings measured in 2009 dollars.
Buffett initially attended the Wharton School at the University of Pennsylvania, then transferred to the University of Nebraska. There he began his interest in investing after reading Benjamin Graham's The Intelligent Investor. He obtained a Master's degree in economics in 1951 at Columbia Business School, studying under Benjamin Graham. Buffett wanted to work at Graham-Newman but was initially turned down. He went to work at his father's brokerage as a salesman until Graham offered him a position in 1954. Buffett returned to Omaha two years later, when Graham retired
In 1952 Buffett married Susan Thompson and the next year they had their first child.
Buffett established Buffett Associates, Ltd., his first investment partnership, in 1956. It was financed by $100 from Buffett, the general partner, and $105,000 from seven limited partners consisting of Buffett's family and friends. Buffett created several additional partnerships which were later consolidated as Buffett Partnership Limited. He purchased a five-bedroom stucco house in Omaha, where he still lives, for $31,500.
Buffett, after several years, decided to wind up the partnership, returning the lucky investors their capital and their share of the profits, and bought an interest in Berkshire Hathaway, a textile company.
Buffett’s early days at Berkshire Hathaway were not great. The company was in an industry facing real challenges from exports and high manufacturing costs. Warren Buffett had not, however, forgotten what he had learned under Graham, and arranged for the company to buy out two Nebraska insurance companies.
This was the start of Buffett’s interest in insurance and the rise to financial fame of both himself and Berkshire Hathaway. The insurance game is a hard one but under Buffett, the company has become, not only a successful share investor, but a leading provider of insurance.
Buffett struck up a friendship with Charles T Munger, a lawyer and investor and Charlie Munger eventually joined Warren at Berkshire Hathaway as his Vice-Chairman. Warren Buffett is always the first to acknowledge the contribution that Charlie Munger has made to Berkshire Hathaway
Under Buffett and Munger, Berkshire Hathaway has become an investment giant that wholly owns a number of successful companies.
Buffett married Susan Buffett née Thompson in 1952. They had three children, Susie, Howard, and Peter. The couple began living separately in 1977, although they remained married until her death in July 2004. Their daughter, Susie, lives in Omaha and does charitable work through the Susan A. Buffett Foundation . In 2006, on his seventy-sixth birthday, Warren married his never-married longtime-companion, Astrid Menks, who was then sixty years old. She had lived with him since his wife's departure in 1977 to San Francisco. It was Susan Buffett who arranged for the two to meet before she left Omaha to pursue her singing career. All three were close and holiday cards to friends were signed "Warren, Susie and Astrid".
He lives in the same house in the central Dundee neighborhood of Omaha that he bought in 1958 for $31,500, today valued at around $700,000 (although he also does have a $4 million house in Laguna Beach, California
In addition to other political contributions over the years, Buffett has formally endorsed and made campaign contributions to Barack Obama's presidential campaign
The majority of Buffett's considerable fortune was amassed through Berkshire Hathaway, a company for which he is the largest shareholder and CEO.
His children will not inherit a significant proportion of his wealth. These actions are consistent with statements he has made in the past indicating his opposition to the transfer of great fortunes from one generation to the next. Buffett once commented, "I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing
In June 2006, Buffett made an announcement that he would be giving his entire fortune away to charity, committing 85 percent of it to the Bill and Melinda Gates Foundation. This donation became the largest act of charitable giving in United States history..
In 2008 he was ranked by Forbes as the richest person in the world with an estimated net worth of approximately US$62 billion.